CMS Corporation's Balance Sheet as of Today Is as Follows

question 3

Multiple Choice

CMS Corporation's balance sheet as of today is as follows: The bonds have a 4.0% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 years from today. The yield to maturity is 12%, so the bonds now sell below par. What is the current market value of the firm's debt?

• A) $5,276,731
• B) $5,412,032
• C) $5,547,332
• D) $7,706,000
• E) $7,898,650

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Definitions:

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in air and is absorbed by plants in photosynthesis.

Oxygen

A chemical element essential for most forms of life on Earth, involved in cellular respiration and energy production.

Cardiovascular

Relating to the heart and blood vessels, concerning the circulatory system that transports blood throughout the body.

Musculoskeletal

Pertaining to the muscles and skeleton of the body, often relating to disorders or injuries.